Investment Property in Spain

An outline of how a buyer should find investment property in Spain, what the property markets future holds and why this investment will be a sound one to make.

Many have discovered the benefits of buying investment property in Spain. The mortgage rates within the European Union are outstanding when compared to America or the UK and the tourists increase with each year. Residual income is the best kind of income to make and there is plenty to go around in key areas of Spain. In fact, the average renter will gain 8-10% the value of their rental investment property in Spain each year. Many people earn this money from the comforts of their home, many miles away.

One should visit the country before attempting to purchase investment property in Spain. There are many local real estate agents that are more than willing to escort prospectors to various rental properties. When choosing a place to invest, this is just a matter of preference for the buyer. However, there are some regions that see a lot more tourist activity than others. For example, the Costa Blanca area sees millions of tourists and renters flock to its beaches each year. The Costas have become a bit of a cash cow for those who are looking for investment property in Spain.

Since there are so many people looking to buy investment property in Spain, there are unscrupulous real estate agents that have decided to take advantage of the naive. That is why it is so important to research before a purchase is made. One should get a lay of the land and keep in mind that not all rental investment property in Spain is a golden opportunity. Assuming the investors real estate agent is legitimate, they should be presenting property at its fair market price. Also, one should be leery of those that gouge their commission prices. It might even be worth looking into rental property that is for sale by owner.

The greatest thing about rental investment property in Spain is that it’s hard to lose money on it, should the investor do his/her homework first. Also, it is the kind of investment that one never has to use their own money on, should they arrange a good deal with a local bank. Mortgage lenders are plentiful in Spain and it really is best to arrange a mortgage with a local branch, provided the buyer isn’t paying in cash (rare). Keep in mind that Spanish property will be purchased in Euros, so one should pay attention to the current exchange rate when making a bid.

It is also advisable to hire a lawyer when buying real estate investment property in Spain. However, as with hiring a real estate agent, one should be wary of lawyers looking to only line their pocketbooks. There really doesn’t need to be too much involvement from a Spanish lawyer. The less responsibility they are given, the less money an investor has to pay them. Minimal involvement from a lawyer is recommended, which would include having them look over important documents before anything is signed.

Investment property in Spain makes a wise purchase for anyone interested in renting or living in the area. Provided one is careful in his/her decision-making and associates oneself with reputable people, it is hard to be disappointed with a piece of rental investment property in Spain. In fact, those that do invest will discover what many have known for years: Spain is a real estate wonderland.

Written by Amy Cottrell for OverseasPropertyNet.com

Sunday 23rd July 2006



Copyright © 2006, OverseasPropertyNet.com - All Rights Reserved.